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HOLDREGE, NEB - Cargill will invest about $30 million to increase unloading speeds, storage and shipping capacity, as well as add railroad service at its grain elevator southwest of Holdrege.
“South Central Nebraska is a highly productive area for grains” said Phil Harders, leader of Cargill AgHorizons U.S.’s Cornhusker Farm Service Group (FSG). “In addition to the local markets we have been serving by truck, the added rail service will expand the markets for farmer customers to the Pacific Northwest and the U.S. Southwest.”
The capital investment project at Holdrege is expected to be completed by the harvest of 2014. To date, Holdrege has shipped grain out by truck. The project will add rail service along the BNSF Railroad, which will allow Cargill to load 120-car shuttle trains.
“Unit trains are an efficient way to move large volumes of grain,” said Tim Coppage, Cornhusker FSG merchandising leader. “By giving us access to additional markets like the Pacific Northwest and the U.S. Southwest, we can better meet the demands of our farmer customers for broader markets.”
The project will increase storage capacity by 3.5 million bushels, which will bring the total to 5 million. Cargill will add three truck receiving pits with a combined 80,000 bushel per hour truck receiving capacity. The facility will also have 70,000 bushel per hour rail shipping capacity.
“The high capacity receiving pits and grain legs will provide a better fit to the increased harvest speed of area producers,” said John Barrett, Cornhusker FSG operations leader.
The facility will be increasing its staff from seven fulltime grain employees to 10 or more over the coming year. Contractors will have approximately 100 employees at the site in different stages of construction.
Area officials welcomed the news.
“The economic impact of the facility,” said Phelps County Board Chairman Jim Ostgren, “will be felt both in the year long construction phase as well as helping provide area producers access to additional markets in the U.S. and around the world for years to come.”
Greg Ibach, director of the Nebraska Department of Agriculture, said: “I am pleased that Cargill is making this investment that will enhance access for Nebraska crops to domestic and foreign markets.”
Nebraska State Senator Tom Carlson added that “this is a substantial investment in our community and contributes significantly to keeping the Holdrege area as a great place to live, work, raise a family, and enjoy more of the ‘Good Life.’ These improvements will increase commerce in our area and service to local grain producers.”
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